In a hurry? Here’s a quick summary…
- Moi University is facing severe financial challenges due to reduced government funding, declining student enrollment, and the elimination of private sponsorship, but recent government support has helped resume full salary payments.
- The university plans to address these issues by diversifying revenue streams, utilizing excess capacity, and ensuring accountability in capital projects under investigation.
The Moi University Council has issued a detailed statement addressing the institution’s ongoing financial difficulties, following recent disruptions, including a temporary closure and staff industrial action.
The Council acknowledged that these challenges stem from long-standing issues, worsened by reduced government funding and declining student enrollment.
According to the Council, the university is grappling with a severe financial shortfall, struggling to meet its operational expenses, including staff salaries.
Over the past decade, government funding has significantly dwindled due to the introduction of the differentiated unit cost model, reducing the government’s contribution from an expected 80% of program costs to just 38%.
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Initially, private student enrollment filled this gap, but the 2016 education reforms that eliminated the private sponsorship model further strained the university’s finances.
Compounding these issues is a sharp decline in student numbers, with Moi University enrolling only 6,000 first-year students for the 2024/2025 academic year against a capacity of over 14,000.
In response, the Council is engaging government agencies to address the underutilized capacity, with solutions anticipated in the 2025/2026 academic year.
Meanwhile, delays in salary payments and unpaid statutory deductions have raised concerns. The Council clarified that these delays were due to insufficient funds rather than mismanagement.
However, with recent government support, the university resumed full salary payments and statutory remittances in September 2024.
The government has pledged Ksh.3.5 billion to bridge payroll gaps and meet urgent financial obligations. The Ministry of Education and National Treasury have assured the institution of continued financial support to maintain operations.
Addressing media reports on alleged mismanagement of Ksh.2.2 billion in capital projects, the Council termed these claims inaccurate, explaining that the amount reflects the total project cost, much of which remains in the planning or funding stages.
Some projects are donor-funded and undergoing external audits to ensure accountability. Investigations by the Ethics and Anti-Corruption Commission (EACC) into procurement decisions are ongoing.
Looking ahead, the Council emphasized its commitment to ensuring the university’s financial sustainability.
Strategies include diversifying revenue streams through expanded research initiatives, forging new partnerships, and other income-generating activities. Plans are also underway to reduce reliance on government funding.
“We are optimistic that with continued government support and strategic measures, Moi University will emerge stronger and more resilient,” the statement concluded.